Breaking News

You are here » Indian-Commodity  :  Economy  :  PSBs write off loans worth Rs 2.41 lakh crore in over 3 years

04-Apr2018

PSBs write off loans worth Rs 2.41 lakh crore in over 3 years

Public sector banks (PSBs) have written-off non-performing assets (NPAs) or bad loans worth Rs 2.41 lakh crore in over three years. Minister of State of Finance Shiv Pratap Shukla has stated that writing-off bad loans is a regular exercise carried out by banks to clean up their balance sheets and achieving taxation efficiency. As per the Reserve Bank of India (RBI) data on global operations, PSBs wrote off Rs 2,41,911 crore from financial year 2014-15 till September 2017.

Shukla pointed out that loans are written off for tax benefit and capital optimisation, while borrowers of such loans continue to be liable for repayment. He also noted that recovery of dues takes place on ongoing basis under legal mechanism, including SARFAESI Act and debt recovery tribunals. Therefore, he said that write-offs does not benefit borrowers.

Besides, according to the latest RBI data, 21 state-run banks which account for more than two-thirds of the country's banking assets had as of December 31 stressed loans of Rs 8.26 lakh crore, or 15.8 percent of their total loans.


Related News

View all news

CPI inflation hits 6-month high of 2.92% in April

India's retail inflation based on Consumer Price Index (CPI) continued northward journey for third straight month and inched up to a 6-month high of 2.92% in April 2019 due to a spike in food prices, including......

Indian economy to grow at 7% range in current fiscal: Subramanian

Chief Economic Advisor (CEA) Krishnamurthy V. Subramanian has said  that the Indian economy would grow at 7% range in the current financial year (FY20) powered by the effects of the strong structural......

Banks take 57% haircut in 94 cases resolved in FY19: ASSOCHAM-CRISIL study

A joint study carried out by the industry body Associated Chambers of Commerce & Industry of India (ASSOCHAM) and rating agency CRISIL stated that banks have taken a huge 57% haircut in the 94......

Top News

View all news

SRF, NIIT Technologies and United Bank of India to see some action today

SRF has entered into a definitive agreement to sell its Engineering Plastics Business to DSM, the Life Sciences and Materials Sciences Company in an all-cash transaction, amounting to Rs 320 crore. The......

NIIT Technologies concludes sale of 88.99% stake in ESRI India Technologies

NIIT Technologies has concluded the sale of 88.99% equity shares in ESRI India Technologies, India to Environment Systems Research Institute Inc., USA. Consequent to above sale, ESRI India Technologies,......

United Bank of India to raise Rs 1,500 crore by various means

United Bank of India has received approval to raise equity capital not exceeding Rs 1,500 crore in one or more tranches during the financial year by way of Qualified Institutions Placement, Public Issue,......